Fnac Darty SA (FNAC) AI Stock Analysis

• Market Cap: €1.04B
• Dividend Yield: 3.47%
• Average Volume (3M): 21.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 17.97%
• EPS Growth: -81.24%
• Country: FR
• Employees: 26,465
• Sector: General
• Sector Strength: N/A
• Industry: Specialty Retail
• EPS (TTM): -2.04
• Shares Outstanding: 29,682,146
• 10 Day Avg. Volume: 18,463
• 30 Day Avg. Volume: 21,621
• PEG Ratio: 0.01
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 1.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €36.00
• Price Target Upside: 24.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.42
• Revenue Forecast (FY): €10.48B

• Rating: 62 Neutral
• Price Target: €38.00 ▲(31.03% Upside)
• Action: Downgraded Date: 02/28/26
• Date: Action: Downgraded 02/28/26

The score is driven primarily by mixed fundamentals: strong and improving cash generation is offset by a return to losses and materially higher leverage. Technicals are a notable positive with strong trend and momentum, while valuation is held back by the negative P/E despite a moderate dividend yield.

Positive Factors

Cash generation

Consistent positive operating and free cash flow through 2025 provides durable liquidity and internal funding capacity. Strong cash conversion supports debt servicing, working capital and reinvestment even when accounting earnings lapse, giving the company financial flexibility over the medium term.

Revenue momentum

A clear rebound in top-line growth after a near-flat prior year signals renewed demand and execution across channels. Sustained revenue expansion helps absorb fixed costs, supports scale benefits, and is a structural positive for profitability recovery if maintained over several quarters.

Diversified omnichannel and services

Multiple revenue streams—retail, fast-growing e-commerce and high-margin services—reduce single-channel dependence and create recurring income. Services and online penetration enhance customer retention and lifetime value, improving revenue stability and supporting margin improvement over time.

Negative Factors

Rising leverage

Material increase in leverage materially raises financial risk and reduces strategic flexibility. Higher interest and principal commitments limit capital allocation for growth or remodeling stores, strain covenant headroom, and make the company more sensitive to cyclical shocks over the coming months.

Return to net loss and margin pressure

A swing to an accounting loss and falling gross margins indicate structural pressures on profitability—from pricing, mix, or cost inflation. Reduced earnings erode retained capital and weaken the balance sheet, complicating reinvestment and dividend sustainability unless margins recover.

Thin operating profitability

Very low EBIT margin leaves little buffer against input cost rises or demand dips. Limited operating cushion constrains ability to fund strategic initiatives internally and increases reliance on external financing, amplifying the impact of the company’s elevated leverage on long-term stability.

Fnac Darty SA Business Overview & Revenue Model

Company Description

Fnac Darty SA engages in the retail of entertainment and leisure products, consumer electronics, and domestic appliances in France and Switzerland, Belgium and Luxembourg, and the Iberian Peninsula. The company offers consumer electronics, including desktop computers, laptops, tablets, software, printers, e-readers, telephones and office products, and accessories, as well as various connected products; cameras and photography accessories; televisions and video accessories, such as DVD players, Blu-Ray players, and other accessories; and audio items and accessories comprising MP3 players, headphones, docking stations, and related accessories. It also provides editorial products that include hard copy and digital books; discs comprising music CDs, and video DVDs, and Blu-Ray discs; video games and gaming consoles; and gadgets, T-shirts, musical instruments, and others. In addition, the company offers refrigerators/freezers, cooking equipment, dishwashers, and washing machines/dryers; vacuum cleaners, food processors, and body care and water/air treatment appliances; and kitchen units, home and design products, games and toys, urban mobility, stationery, and wellbeing products. Further, it provides warranty extension, product insurance sale, repair-related subscription sale, after-sale, and delivery and installation services; rental services for consumer electronics and delivery services; ticketing and gift boxes; and membership cards for the company's loyalty programs. The company sells its products through its stores and e-commerce websites. It operates 957 points of sale, including 390 franchises. The company was founded in 1954 and is headquartered in Ivry-sur-Seine, France.

How the Company Makes Money

Fnac Darty generates revenue through multiple key streams. Primarily, it earns money from the direct sale of consumer electronics and household appliances, which includes high-margin products such as smartphones, televisions, and kitchen appliances. Additionally, the company has a strong presence in the media sector, selling books, music, and games, which contribute significantly to its revenue. Fnac Darty also benefits from service offerings, including extended warranties, repair services, and installation services, which enhance customer loyalty and provide recurring income. The company has established partnerships with various brands and suppliers, allowing it to offer exclusive products and promotions, further driving sales. Additionally, the growth of its e-commerce platform has become a critical revenue source, especially in recent years, as consumer shopping habits have shifted towards online purchasing.

Fnac Darty SA Financial Statement Overview

Summary

Cash flow is a clear strength (operating cash flow ~€616M and free cash flow ~€431M in 2025), but financial risk rose as leverage increased sharply (debt-to-equity ~2.62x) and profitability deteriorated (net income swung to a -€140M loss and gross margin stepped down). Revenue growth improved (+10.6% in 2025), yet thin operating profitability (~2% EBIT margin) limits cushion.

Income Statement

Revenue growth improved meaningfully in 2025 (up 10.6% vs. near-flat in 2024), but profitability deteriorated: net income swung to a loss (-€140M) after a small profit in 2024 (€35.9M). Gross margin also stepped down (about 28.0% in 2025 vs. 30.1% in 2024), and operating profitability remains thin (EBIT margin ~2.0% in 2025). Overall, the top-line trajectory is a positive, but the recent return to losses and narrow operating cushion weigh on the score.

Balance Sheet

Leverage increased sharply in 2025, with debt rising to ~€3.79B and debt-to-equity moving to ~2.62x (from ~1.51x in 2024). Equity declined to ~€1.45B, and returns on equity turned negative in 2025, reflecting the net loss. While total assets remained relatively stable (~€8.54B), the higher leverage and weaker equity profitability increase financial risk and reduce flexibility.

Cash Flow

Cash generation is a relative strength: operating cash flow rose to ~€616M in 2025 (from ~€501M in 2024) and free cash flow increased to ~€431M (from ~€377M), indicating improved cash conversion despite the reported net loss. Free cash flow has been consistently positive across the period provided, which supports liquidity and potential debt service capacity; however, the disconnect between earnings and cash flow in 2025 signals earnings quality volatility that bears monitoring.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.33B	8.25B	7.87B	7.95B	8.04B
Gross Profit	2.89B	2.48B	2.38B	857.90M	851.70M
EBITDA	203.00M	679.30M	22.90M	552.70M	610.70M
Net Income	-140.00M	35.90M	49.70M	-32.00M	160.30M
Balance Sheet
Total Assets	8.54B	8.49B	7.01B	6.75B	6.96B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.09B	1.14B	950.80M	1.19B
Total Debt	3.79B	2.43B	2.07B	2.08B	2.06B
Total Liabilities	6.97B	6.75B	5.48B	5.22B	5.40B
Stockholders Equity	1.45B	1.61B	1.52B	1.51B	1.56B
Cash Flow
Free Cash Flow	431.20M	377.20M	433.90M	184.00M	384.80M
Operating Cash Flow	615.50M	501.10M	573.10M	322.40M	501.60M
Investing Cash Flow	-298.90M	-104.40M	-130.00M	-261.70M	-110.80M
Financing Cash Flow	-274.40M	-459.10M	-342.00M	-312.40M	-779.20M

Fnac Darty SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:FNAC, the sentiment is Neutral. The current price of 29 is below the 20-day moving average (MA) of 35.20, below the 50-day MA of 34.03, and below the 200-day MA of 30.73, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 55.00 is Neutral, neither overbought nor oversold. The STOCH value of 9.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:FNAC.

Fnac Darty SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALVU	67 Neutral	€142.95M	18.62	―	2.38%	8.59%	-22.37%
FNAC	62 Neutral	€1.04B	-4.25	-9.26%	3.47%	17.97%	-81.24%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SRP	49 Neutral	€77.35M	-0.46	―	―	-4.53%	-9785.71%
ALSPT	47 Neutral	€4.56M	-1.79	-7.01%	―	-7.50%	-88.09%